Drivers with automatic driving licences are facing a significant increase in car insurance premiums, with costs rising by up to 84% compared to those holding manual licences.
Recent research, which analyzed over 100,000 car insurance policies, found that automatic licence holders pay an average of £1,296 per year, while manual licence holders pay just £696 annually.
This sharp cost difference follows a surge in the number of automatic licences issued, with learner drivers increasingly opting for automatic gearboxes. This shift has led to a 123% rise in automatic licence holders over the past year. The trend is also part of a broader move in the UK motoring industry as the country prepares for the 2030 Zero Emission Vehicle mandate, which will ban the sale of new petrol and diesel cars. This mandate is accelerating the shift to electric cars, all of which feature automatic transmissions.
Experts attribute the growing popularity of automatic vehicles to their convenience, particularly in urban areas, and easier handling in congested cities. The rise of electric and hybrid cars, which predominantly use automatic transmissions, has also contributed to the trend. Additionally, modern automatic vehicles offer better fuel efficiency, and environmental incentives such as potential Congestion Charge exemptions are further encouraging drivers to make the switch.
Market share data shows the dramatic change in consumer preferences: In 2014, manual gearboxes made up 83.7% of vehicles, but by late 2024, automatics are expected to represent 29% of the UK market.
Analysis from Quotezone, based on data from April to June 2025, confirmed that insurance premiums for automatic licence holders continue to carry a substantial surcharge. In April, the gap reached its peak, with automatic drivers paying £1,358 annually, compared to £711 for those with manual licences.
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